FMH UNIT 2-7

Part 1: Business Plan
A business plan provides a business with a vision for the future and a clear strategy for expanding the business. Understanding the components of a business plan can help identify the needed resources, timeline, and steps to achieve the business’s goals, grow the business, track the growth, help to forecast and plan for potential risks, and help investors see the viability of a company.
For your course project, you will create a basic business plan for a fictional start-up health care company. In each unit, from Unit II through Unit VII, a section of the project will be due. You will combine all sections into one document toward the end of the course and submit in Unit VII as your course project.
Research
Feel free to research an organization similar to the one you would like to complete the project on as a guide for creating the business plan.

Unit II Assignment
In this unit, you will complete the following:
the executive summary,
the business description,
a short explanation of the importance of the time value of money, and
the four basic financial statements.
Executive Summary
The executive summary is the first and one of the most critical parts of a business plan. It provides an overview of what the business plan will cover. You can always go back and update this section in Unit VII before posting the final course project.
Include the following in your executive summary:
mission statement,
products or services you offer, and
why you started the business.
Business Description
The business description should include the following:
type of entity (e.g., a sole proprietorship, or an LLC) and name of the company;
information regarding the industry your company will serve;
your team experience in the industry;
business goals (two long-term and two short-term plans);
product or services;
target customer;
trends and major competitors; and
what will set your company apart from the competition.
Time Value of Money
Briefly explain the importance of the time value of money and how you would use it to maximize profit for your company.
Financial Tools
Create the four key financial statements, and explain the importance of each for your company. Refer to the examples in your text, and research similar companies online. Remember this is a start-up company and may not have a lot of resources. The main consideration is adding the right information for each of the financial statements.
Identify three critical ratios that are important to review.
Research similar companies’ business plans, like the one you are creating, as a guide. This portion of the business plan (Unit II) should be at least four pages in length. As this assignment is part of a larger project, no abstract or title page is needed at this time. Use at least three outside sources. Adhere to APA Style when creating citations and references for this assignment. APA formatting, however, is not necessary.
Brief Summary of the Rest of the Project:
Unit III – Description of the Financing Model
In this section, you will show your plan for financing the operation and explain how you decide to balance debt, equity, and the other financing options.
Unit IV – Financial Projections
In this section, you will interpret the risk and return characteristics of a portfolio and articulate the concept of the cost of capital.
Unit V – Capital Budgeting
In this section of the project, you will evaluate the merits of each asset in a company and rank competing investments.
Unit VI – Managing Cost of Capital
In this portion of the project, you will calculate associated earnings per share and degree of financial leverage. You will discuss cash payout procedures, their tax treatment, and the role of dividend reinvestment plans.
Unit VII – Capital Budgeting
Create a plan to manage the cost of capital in order to maximize profits. Discuss the different strategies required for managers related to planning for capital expenditures. Create a capital budgeting plan. Submit the entire project in one document after incorporating feedback from the professor.
Your final project (due in Unit VII) will be at least seven pages in length. Your final version of the project will include a separate title page and reference page. You will provide subheadings for the introduction and conclusion, as well as the elements of the assignment as subheadings. Your final project will include tables and graphs as well. Adhere to APA Style when creating citations and references for this assignment.

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